Business / Taxes / Dividend Reinvestment Plan (DRIP): Many publicly held companies allow shareholders to reinvest dividends in company stock or buy additional shares through dividend reinvestment plans, or DRIPs. Enrolling in a DRIP enables you to build your investment gradually, taking advantage of dollar cost averaging and usually paying only a minimal transaction fee for each purchase. Many DRIPs will also buy back shares at any time you want to sell, in most cases for a minimal sales charge. One potential drawback of purchasing through a DRIP is that you accumulate shares at different prices over time, making it more difficult to determine your cost basis — especially if you want to sell some but not all of your holding.
Plan Noun Synonyms: design, layout, blueprint, scheme, method, procedure, system, arrangement, programme, project, formula, pattern, script, scenario
Business / Taxes / Reinvestment: When you own certain stocks and most mutual funds, you can reinvest the dividends or distributions to buy more shares instead of receiving a cash payout. In a corporate Dividend Reinvestment Plan (DRI MORE
Science / Biology / Planktonic Organisms: Floaters; one of the two main types of organisms in the pelagic zone of the marine biome. MORE